Neuland Laboratories Limited – Transformation towards niche APIs?

Some corporate governance issues!

In the FY15 annual report , there is a qualified opinion by auditors-

Auditors’ Observation: The Auditors have mentioned in
their respective Reports on Standalone Financial Statements
and Consolidated Financial Statements for the year ended
March 31, 2015 as under:
The Company recognized revenues from sale of goods
amounting to 290.53 lakhs based on management’s
assessment of transfer of significant risks and rewards of
ownership to the customers. However, in our opinion, such
recognition does not meet the conditions enunciated under
the Accounting Standard (AS) 9 on “Revenue Recognition”
notified under the Companies (Accounting Standards) Rules,
2006. Had the Company followed the principles of AS 9, revenue
from operations, profit before tax and tax expense for the year
ended March 31, 2015 would have been lower by290.53 lakhs,
130.54 lakhs and44.37 lakhs respectively. Further, the trade
receivables, current liabilities and reserves and surplus as at
March 31, 2015 would have been lower by 290.53 lakhs,
144.39 lakhs and86.17 lakhs and the inventories as at that
date would have been higher by59.97 lakhs.

Also – Possible conflict of interest / diversion of funds to related unlisted party – NPRPL ??

Analysis from senior members would be helpful..